United Kingdom: Composite PMI records worst reading since January 2021 in October
The S&P Global/CIPS Composite Purchasing Managers Index (PMI) came in at 48.2 in October, down from September’s 49.1. October’s result marked the worst reading since January 2021. As such, the index fell further below the 50.0 no-change threshold, signaling a sharper deterioration in private sector operating conditions compared to the previous month.
The Manufacturing PMI clocked in at 46.2 in October, down from Septembers 48.4. Lastly, the services PMI activity index fell to 48.8 in October (September: 50.0). Rising interest rates, still-intense price pressures and political uncertainty weighed on the private sector in October. Moreover, employment growth was the slowest in 20 months, with manufacturing employment contracting, and business optimism fell to an over two-year low.
Chris Williamson, chief business economist at S&P Global, said:
“October’s flash PMI data showed the pace of economic decline gathering momentum after the recent political and financial market upheavals. The heightened political and economic uncertainty has caused business activity to fall at a rate not seen since the global financial crisis in 2009 if pandemic lockdown months are excluded. GDP therefore looks certain to fall in the fourth quarter after a likely third quarter contraction, meaning the UK is in recession.”